Pair Correlation Between Cadiz and Dominion Energy

This module allows you to analyze existing cross correlation between Cadiz Inc and Dominion Energy Inc. You can compare the effects of market volatilities on Cadiz and Dominion Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cadiz with a short position of Dominion Energy. See also your portfolio center. Please also check ongoing floating volatility patterns of Cadiz and Dominion Energy.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Cadiz Inc  vs   Dominion Energy Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Cadiz Inc is expected to generate 1.35 times more return on investment than Dominion Energy. However, Cadiz is 1.35 times more volatile than Dominion Energy Inc. It trades about 0.09 of its potential returns per unit of risk. Dominion Energy Inc is currently generating about -0.01 per unit of risk. If you would invest  1,250  in Cadiz Inc on September 18, 2017 and sell it today you would earn a total of  25  from holding Cadiz Inc or generate 2.0% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Cadiz and Dominion Energy
-0.13

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Cadiz Inc and Dominion Energy Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dominion Energy Inc and Cadiz is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cadiz Inc are associated (or correlated) with Dominion Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominion Energy Inc has no effect on the direction of Cadiz i.e. Cadiz and Dominion Energy go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Cadiz Inc

  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Cadiz Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.

Dominion Energy Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Dominion Energy Inc has generated negative risk-adjusted returns adding no value to investors with long positions.